Bitcoin ETFs Record $300 Million in Net Inflows as Bitcoin Nears $67,000

Net inflows into the 9 spot Bitcoin Exchange Traded Funds (ETFs) reached $300 million yesterday as the market experienced a healthy bullish phase. The largest cryptocurrency by market capitalization had been languishing below $63k for the better part of the last three weeks, so this price rally was a breath of fresh air for the bullish cause.

Daily ETF Flow

According to Bitcoin ETF Flow data, the net inflow for the ETFs was $303 million on May 15, 2024. Here is the entire breakdown:

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According to the spreadsheet, Fidelity’s FBTC fund was the biggest gainer, with a net inflow of $131 million, dwarfing the rest of the pack considerably. BitWise’s BITB and ARK Invest’s ARKB ETFs stood second and third, with $86.3 million and $38.6 million, respectively. The remaining five spot ETFs, including Grayscale, were in single digits.

Bitcoin ETFs Hit the Ground Running

Bitcoin ETFs hit the ground running after being approved at the end of January this year. They have become the best-performing ETFs ever launched in the history of exchange funds. Four top spot ETFs, including BlackRock’s IBIT, FBTC, ARKB, and BitWise, have seen a massive $28 billion worth of buying in just three and a half months.

After the success in America, several other financial destinations have launched their spot crypto ETFs. Hong Kong, in particular, not only launched three Bitcoin funds but also allowed the same three companies to file for Ethereum ETFs, which were also approved. However, the Hong Kong-based funds couldn’t perform as well as their counterparts across the Pacific Ocean. The US has taken the lead here even though it wasn’t the first to cross the line.

However, the performance in the last few weeks has slowed as the crypto market has suffered overall. The end of April witnessed considerable net outflows, with all the top ETFs bleeding value.

The Future

While the total $28 billion invested in US-based Bitcoin ETFs is peanuts compared to the multi-trillion valuation of the entire crypto market, it is important to note that this is a long-term play.

These ETFs are being eyed by top investment banks worldwide, with big names like BlackRock, Morgan Stanley, and JPMorgan already dipping into the market. The US state of Wisconsin has also bought $100 million worth of shares in the ARKB ETF, and that is just one state. It is predicted that sovereign wealth funds, pension funds, and national treasuries will invest in Bitcoin in the near future.